What happens if your energy retailer goes out of business

Weston Energy customer transfer

May 2022

We have initiated the 'retailer of last resort' process that has automatically transferred customers from failed gas retailer Weston Energy Pty Ltd (Weston Energy) to other retailers in Victoria to provide for the continued supply of essential gas services.   

Weston Energy was suspended from the Declared Wholesale Gas Market and had its market registration revoked by the Australian Energy Market Operator (AEMO) for failing to comply with requirements under the National Gas Rules. This occurred from 6.00 am Australian Eastern Standard Time, Tuesday, 24 May 2022.  

Approximately 184 large and medium-sized customers with 1,140 sites in Victoria are affected by this market suspension and participant revocation. 

Customers of Weston Energy are not required to take immediate action. However, if you, or someone at the premises, requires life support equipment, you should inform your new retailer as soon as possible.

Customers have been automatically transferred to either AGL, Origin Energy or EnergyAustralia. Affected customers will be contacted directly by their new retailer with information about the new arrangements including options for ongoing supply and who to contact for more information or in the event of any disputes.  

Customers transferred to a retailer of last resort can change this arrangement at any time. They can stay with this retailer by entering a new contract or can choose a new retailer that serves their area.

On Friday 27 May we sent a letter to Weston Energy customers outlining this process.

Read our media statement.

You do not need to worry about your electricity or gas supply being cut off, even if your energy retailer goes out of business.

Energy is an essential service, so are arrangements in place to ensure supply of electricity and gas continues, even if a retailer is unable to provide it.

Retailer of last resort

Each property has a designated ‘retailer of last resort’ based on which energy distribution area it is located in.

Your retailer of last resort is required to provide you with electricity or gas if your existing retailer cannot do so.

This could occur if:

• we revoke the energy retailer’s licence
• the retailer does not have sufficient funds to purchase electricity or gas from the wholesale market and has their right to do so suspended or revoked by the Australian Energy Market Operator (AEMO).

Depending on where your property is, your retailer of last resort will be either:

• AGL
• EnergyAustralia
• Origin Energy.

In the unlikely event that a designated retailer of last resort fails, customers will be divided between the other two retailers of last resort.

Electricity retailer of last resort

Find out which electricity distribution zone you are in using the Department of Environment, Land, Water and Planning's electricity distribution zone map.

Gas retailer of last resort

What happens when you are transferred to a retailer of last resort 

If your energy retailer goes out of business, you will be automatically transferred to your retailer of last resort.

Your energy supply will not be disrupted and you do not need to do anything immediately. However, if you, or someone at your premises, require life support equipment, you should contact your new retailer immediately.

Your retailer of last resort will contact you in writing with details. They will explain:

• the start date of the new arrangements
• the terms and conditions of the new contract, including prices.

You can transfer out of this arrangement at any time. You can stay with this retailer by entering a new contract or choose a new retailer that serves your area.

Call your new retailer and ask them to put you on their best market offer. If you are a residential or small business customer using less than 40MWh of electricity or 1,000GJ of gas per year you can use the Victorian Energy Compare website to compare offers from all retailers operating in Victoria.

Customers who had recently transferred to or from the failed retailer

Any customers with pending transfers to the failed retailer will remain with their previous retailer.

If you receive a retailer of last resort notice but had already switched to a new retailer, you should contact the retailer of last resort.

Settling bills from a failed retailer

You will receive a final bill from the failed retailer for energy used up until the transfer to the retailer of last resort.

Under the Energy Retail Code of Practice, if you are a residential or small business customer (using less than 40MWh of electricity or 1000 GJ of gas per year from a supply point), a failed retailer, or their administrator, is required to immediately cancel all direct debits that are in place, and notify your financial institution of the cancellation. You can contact your financial institution to confirm the cancellation.

The retailer of last resort will then bill you for energy used from the date you are transferred to them. This may be based on an estimated meter read.

Disputed bills

If you were disputing a bill from the failed retailer, you should contact them directly. They or their administrator should have processes in place for handling unresolved customer complaints.

If you are dissatisfied with their response, contact the Energy and Water Ombudsman (Victoria) (EWOV) on 1800 500 509.

Feed-in tariffs

Notify the retailer of last resort if you had a feed-in tariff arrangement with the failed retailer. They will determine your eligibility for an ongoing feed-in tariff.

Credits

The failed retailer is required to apply any credits still owed to you to your account or pay the outstanding amount. However, if they are in, or go into, liquidation, you may only receive some, or none, of the money owed.

Large electricity customers

Large electricity customers who use more than 160MWh per year will be automatically transferred to a new retailer.

You are free to transfer at any time from your new retailer to another one, or to negotiate a retail contract with your new retailer. If you do not terminate the supply arrangements with the retailer of last resort, or do not enter into a retail contract with them, or do not transfer to a new retailer, the retailer of last resort supply arrangements will end after three months. If this occurs your retailer may be entitled to disconnect your supply.

Large gas customers

Large gas customers who use more than 5,000GJ of gas per year will be automatically transferred to a new retailer.

You are free to transfer at any time from your new retailer to another one, or to negotiate a retail contract with your new retailer. If you do not terminate the supply arrangements with the retailer of last resort, or do not enter into a retail contract with them, or do not transfer to a new retailer, the supply arrangements will end after three months. If this occurs your retailer may be entitled to disconnect your supply.